Volume 13 Number 1 - University of the Philippines College of Law

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National Administrative Register Volume 13/1
and remittances to the Bureau of Internal Revenue (BIR) due its contractual employees have
been made during the subject reporting period.
The Regional Office shall return one set of the duly-stamped report to the contractor or
subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt thereof.
SECTION 16. Delisting of contractors or subcontractors - Subject to due process,
the Regional Director shall cancel the registration of contractors or subcontractors based on
any of the following grounds:
a. Non-submission of contracts between the principal and the contractor or subcontractor
when required to do so;
b. Non-submission of annual report;
c. Findings through arbitration that the contractor or subcontractor has engaged in laboronly
contracting and the prohibited activities as provided in Section 6 (Prohibitions) hereof;
and
d. Non-compliance with labor standards and working conditions.
SECTION 17. Renewal of registration of contractors or subcontractors - All registered
contractors or subcontractors may apply for renewal of registration every three years.
For this purpose, the Triplicate Industrial Peace Council (TIPC) as created under Executive
Order No. 49, shall serve as the oversight committee to verify and monitor the following:
a. Engaging in allowable contracting activities; and
b. Compliance with administrative reporting requirements.
SECTION 18. Enforcement of Labor Standards and Working Conditions - Consistent
with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the
Regional Director through his duly authorized representatives, including labor regulation
officers, shall have the authority to conduct routine inspection of establishments engaged in
contracting or subcontracting and shall have access to employerís records and premises at
any time of the day or night whenever work is being undertaken therein, and the right to copy
therefrom, to question any employee and investigate any fact, condition or matter which may
be necessary to determine violations or which may aid in the enforcement of the Labor Code
and of any labor law, wage order, or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be referred to the Regional
Director for appropriate action as provided for in Article 128, and shall be furnished the
collective bargaining agent, if any.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment
in Article 128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders
to give effect to the labor standards provisions of the Labor Code, other labor legislation and
these guidelines.
SECTION 19. Solidary liability - The principal shall be deemed as the direct employer
of the contractual employees and therefore, solidarily liable with the contractor or subcontractor
for whatever monetary claims the contractual employees may have against the former
in the case of violations as provided for in Sections 5 (Labor-Only Contracting), 6 (Prohibi-